THE JEFFERSON-HAMILTON BARGAIN

At first, opposition to Hamilton’s program arose almost entirely from the South, the region that had the least interest in manufacturing development and the least diversified economy. It also had fewer holders of federal bonds than the Middle States and New England. (Virginia had pretty much paid off its war debt; it did not see why it should be taxed to benefit states like Massachusetts that had failed to do so.) Hamilton insisted that all his plans were authorized by the Constitution’s ambiguous clause empowering Congress to enact laws for the “general welfare.” As a result, many southerners who had supported the new Constitution now became “strict constructionists,” who insisted that the federal government could only exercise powers specifically listed in the document. Jefferson, for example, believed the new national bank unconstitutional, since the right of Congress to create a bank was not mentioned in the Constitution.

Venerate the Plough, a medal of the Philadelphia Society for the Promotion of Agriculture, 1786. Americans like Jefferson and Madison believed that farmers were the most virtuous citizens and therefore agriculture must remain the foundation of American life.

Opposition in Congress threatened the enactment of Hamilton’s plans. Behind-the-scenes negotiations followed. They culminated at a famous dinner in 1790 at which Jefferson brokered an agreement whereby southerners accepted Hamilton’s fiscal program (with the exception of subsidies to manufacturers) in exchange for the establishment of the permanent national capital on the Potomac River between Maryland and Virginia. Southerners hoped that the location would enhance their own power in the government while removing it from the influence of the northern financiers and merchants with whom Hamilton seemed to be allied. Major Pierre-Charles L’Enfant, a French-born veteran of the War of Independence, designed a grandiose plan for the “federal city” modeled on the great urban centers of Europe, with wide boulevards, parks, and fountains. The job of surveying was done, in part, by Benjamin Banneker, the free African-American scientist mentioned in the previous chapter. When it came to constructing public buildings in the nation’s new capital, most of the labor was done by slaves.

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